How to Group Debt

As you accumulate more debt, it can become difficult to manage. If you have multiple obligations to numerous creditors, it can be difficult to keep track of payments and due dates. When this happens, you run the risk of becoming delinquent and harming your credit. One technique to avoid this is to group or categorize your debts. Grouping your debt will make it easier to track, maintain, reduce and eliminate.

Instructions

1

Compile a list of all your debts. List the creditor, the type of debt and the balance owed.

2

Group real estate debt together. This include mortgages and home equity loans.

3

Group auto loans together. These are separate because they are larger secured debts but not as large as real estate loans.

4

Place the unsecured debt together. This includes credit cards, personal loans and student loans. These are debts that have no collateral.

5

Arrange each group of debts from smallest to largest. The smaller debts are more likely to be paid off quicker. Total up the balances of each group so you know how much of each type of debt you owe.